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According to ShibDaily, filmmaker Carl Erik Rinsch has been arrested by the Department of Justice (DOJ) for allegedly misusing $11 million from Netflix, which was intended for a sci-fi series, to gamble on stocks and cryptocurrency. The U.S. Attorney’s Office for the Southern District of New York announced that Rinsch was taken into custody on March 18 in West Hollywood, California, following accusations of defrauding Netflix out of millions meant for the development of a project titled White Horse.

Acting U.S. Attorney Matthew Podolsky and FBI New York Field Office Assistant Director Leslie Backschies outlined the charges, which involve an alleged scheme to misappropriate funds intended for the series. Podolsky stated that Rinsch orchestrated a plan to solicit a large investment from Netflix, claiming the money would be used to finance a television show, but instead, it was used for personal investments. In 2018, Rinsch reportedly secured a deal with Netflix to finance his science fiction series, with Netflix agreeing to pay for existing episodes and provide additional funding to complete the project. Between 2018 and 2019, Netflix transferred approximately $44 million toward the production of White Horse.

In late 2019 and early 2020, Rinsch requested additional funding from Netflix to complete White Horse, and the streaming giant agreed to provide an extra $11 million, which was transferred to a company controlled by Rinsch in March 2020. Shortly after receiving the funds, Rinsch allegedly moved the money through multiple bank accounts before consolidating them into a personal brokerage account. He then used the funds for personal and speculative investments in securities. Despite losing most of the $11 million, Rinsch reportedly did not allocate the remaining money toward the production of White Horse. Instead, prosecutors allege he used the funds for personal spending, cryptocurrency investments, and luxury purchases.

The indictment reveals that Rinsch spent approximately $1.79 million on credit card bills, over $1 million on legal fees, including lawsuits against Netflix and divorce-related expenses, and nearly $395,000 on accommodations at high-end rental properties. Additionally, Rinsch allegedly spent $2.42 million on luxury vehicles, including five Rolls-Royces and a Ferrari, along with $652,000 on watches and designer clothing. Rinsch faces multiple financial crime charges, including one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years in prison. He also faces five counts of engaging in monetary transactions involving property derived from unlawful activity, with each charge carrying a potential sentence of up to 10 years.

Binance has announced that after investigating a market maker for GoPlus Security (GPS), it was found that the same entity was also responsible for market-making activities for the MyShell (SHELL) project.To safeguard Binance users, the exchange has taken actions against the market maker’s misconduct. The market maker has been offboarded from the platform, and further market-making activities have been prohibited. The market maker’s proceeds have been confiscated and will be used for compensating users of the GPS and SHELL projects. A detailed compensation plan will be shared at a later date.